Analyst chastises Mylan—not known for its transparency—for under-the-radar dealmaking

Mylan should have informed investors sooner of a recent product deal it made, Wells Fargo analyst David Maris wrote to clients. (Mylan)

Mylan unveiled plenty of news in its second-quarter earnings release last week, including that its revenues were down year over year and that it was lowering guidance. But there was also some key info it didn’t include.

In late July, the company agreed to buy an already-on-the-market product for $463 million, it said in its quarterly securities filing, and that deal should close in the second half of this year. And Wells Fargo analyst David Maris, for one, chastised the company for not bringing that fact to light sooner.

“We believe that investors should know more about the details of this deal, especially given its size,” he wrote this week in a note to clients. One reason? “If it is accretive, it may mean that Mylan’s 2018 guidance lowering may be more conservative than anticipated,” he pointed out.

Free Daily Newsletter

Like this story? Subscribe to FiercePharma!

Biopharma is a fast-growing world where big ideas come along daily. Our subscribers rely on FiercePharma as their must-read source for the latest news, analysis and data on drugs and the companies that make them. Sign up today to get pharma news and updates delivered to your inbox and read on the go.

That wasn’t the only item that didn’t make the press release, Maris noted. Mylan’s regulatory filing also said that in April, the public prosecutor’s office in Milan, Italy, had served some Mylan employees with search warrants as part of an investigation into interactions with an Italian hospital and sales of certain reimbursable drugs. The following month, one of the generics giant’s subsidiaries received a civil investigative demand from the Department of Justice seeking copycat pricing and sales info.

RELATED: Think EpiPen is Mylan's first scandal? Here's a timeline of jet use, an unearned MBA and more

It’s not the first time Mylan’s been flagged for keeping mum. Back in 2015, reports surfaced that Mylan hadn’t disclosed then-director Rodney Piatt’s role in a pair of previous Mylan land deals. It hasn’t exactly served up details on the more controversial parts of its executive pay plan, either.

Meanwhile, Mylan is looking at its options for improving investor sentiment—which may not make for a very long list, Maris has said.

RELATED: Can a strategic review solve Mylan's problems? Don't count on it

“We think the prospect of asset sales at higher prices than they were acquired (such as Meda) is unlikely, and if sales were at lower prices, it may not meet the goal of unlocking value,” he wrote in a previous note to clients, adding that “We do not think there is a high likelihood that a public or private buyer for the company or significant parts of the company emerges.”

Suggested Articles

An injection that's under FDA priority review as a monthly HIV therapy can suppress the virus even if given every two months, a phase 3 has shown.

Pfizer and Astellas are chasing a new nod for prostate cancer drug Xtandi, and thanks to the FDA, they might not have to wait that long.

Sanofi lost an appeal challenging the ban on its dengue vaccine Dengvaxia in the Philippines, despite an ongoing outbreak there.